Leading DEX on Base Suspends Trading Due to Exploit Reports
Date: 2023-08-01 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
LeetSwap, a decentralized crypto exchange built on the second layer blockchain Base, has suspended trading due to exploit concerns.
“Because our DEX is an offshoot of Solidly, our factory had a security hold feature,” the platform said in a statement.
The LeetSwap team noticed that some of the pool's liquidity may have been compromised, so they temporarily stopped trading for further investigation.
The announcement came shortly before blockchain security firm PeckShield revealed that around 340 ETH (about $630,000) worth of liquidity pairs on Base had been used.
“A hacker managed to use LeetSwap, the leading decentralized exchange on Base, to steal about $630,000 worth of ETH from various liquidity token pairs on the DEX,” said Stephen Zheng, director of research at The Block.
BALD liquidity crisis
On the same day, the popular memcoin Bald (BALD) fell 90% after the token developer removed 6,800 ETH ($12.5 million) from the LeetSwap liquidity pool. This led to a liquidity crisis, causing the price of the token to drop from $0.09 to $0.01 in an instant.
At the peak of the pump, the value of the token approached $0.085, and the market capitalization reached $85 million. Over the course of a day, the value of the token increased tens of thousands of times. Since BALD is built on the Coinbase blockchain, the community suspects that the crypto exchange is inflating the price on purpose.
Crypto traders are switching to DEX
In May, cryptocurrency exchanges came under pressure due to a massive liquidity decline and the exit of large trading firms from the market, but this trend did not touch the DEX. The reason is that many centralized exchanges have decided not to list popular memcoins.
However, traders decided not to wait and immediately went to decentralized platforms. As a result, trading volumes on the DEX reached records in the spring.
